CHARISMATIC LEADERSHIP BEHAVIOR CHAPTER EIGHT CHARISMATIC LEADERSHIP BEHAVIOR © Prentice Hall 2006 8-1

Learning Objectives After reading this chapter, you should be able to do the following: Describe the behaviors that charismatic leaders use to influence followers. Explain why charismatic leaders can have such strong effects on followers. Describe examples of effective and ineffective charismatic leadership. Describe several personal traits, skills, and power sources of effective charismatic leaders. Describe the major favorable effects of charismatic leadership. © Prentice Hall 2006 8-2

Learning Objectives After reading this chapter, you should be able to do the following: Explain the risks that some charismatic leaders can create for followers. Identify situations in which charismatic leadership is especially effective. Identify situations in which charismatic leadership may not be needed. Explain how leaders can modify situations to make charismatic leadership more effective. © Prentice Hall 2006 8-3

Important Leader Behaviors of Charismatic Leaders Makes inspirational speeches Advocates moral mission and vision Builds own image in followers’ eyes Important Leader Behaviors of Charismatic Leaders Takes risks to achieve mission Uses frame alignment to guide followers Role models behavior for followers with high expectations & confidence © Prentice Hall 2006 8-4

The Qualities of Ethical and Unethical Charismatic Leaders and their Effects on Followers KEY CHARACTERISTICS AND BEHAVIORS Uses power to serve others Aligns vision with followers’ needs and aspirations Considers and learns from criticism Stimulates followers to think independently and to question the leader’s views Uses open, two-way communication Coaches and develops followers; shares recognition with followers Relies on internal moral standards to satisfy organizational and societal interests Uses power for personal gain or impact Promotes own personal vision Censures critical or opposing views Demands own decisions be accepted without question Uses one-way communication Is insensitive to followers’ needs Relies on convenient external moral standards to satisfy self-interests © Prentice Hall 2006 8-5

The Qualities of Ethical and Unethical Charismatic Leaders and their Effects on Followers (cont.) Select and produce obedient, dependent, and compliant followers Use crises to solidify their own power base, to minimize dissent, and to increase dependence of followers MAJOR IMPACTS ON FOLLOWERS Develop followers’ ability to lead themselves Use crises as learning experiences, to develop a sense of purpose in the mission and vision, and to emphasize the leader’s intention to do right Avoid the trappings of success, rather shares credit with followers and stays humble Success brings delusions on invincibility and greatness; and extreme emphasis on image management © Prentice Hall 2006 8-6

Key Skills, Characteristics Charismatic Leadership Key Skills, Characteristics, and Sources of Power for Charismatic Leadership Self-confidence & self-assurance Assertive, dynamic, outgoing & forceful Need for power & low authoritarianism Key Skills, Characteristics & Sources of Power for Charismatic Leadership Communication & rhetorical skills Legitimate power Referent power Expert power © Prentice Hall 2006 8-7

Effects of Charismatic Leadership on Followers High emotional involvement & attachment to the leader High esteem, trust, acceptance & loyalty to the leader High satisfaction with the leader, work & organization High self-esteem, self-assurance, & experienced meaningfulness of work Traits, Skills and Sources of Power that Help a Leader Effectively Use Rewards and Punishments Low stress level & low job burnout High organizational commitment Possible hatred of leader & physical or financial Destruction of followers High individual & group performance © Prentice Hall 2006 8-8

Transformational Leadership Transformational leaders are said to influence followers to adopt new values and visions, and transcend personal goals and interests for achievement of collective goals Transformational leadership consists of four components 1. Idealized influence 2. Inspirational motivation 3. Intellectual stimulation 4. Individualized consideration © Prentice Hall 2006 8-9

Transformational Leadership Charismatic leadership and transformational leadership are frequently viewed as interchangeable. Both include many similar behaviors such as developing and articulating an inspirational vision, advocating a moral mission that reflects followers’ values and needs, arousing follower emotions to identify with the leader and the mission, role modeling, frame alignment, and inducing extra effort from followers to achieve high levels of performance. © Prentice Hall 2006 8-10

Transformational Leadership Followers are more aware of the importance of task outcomes, and they may transcend their self-interest for achievement of group interests, have higher self-confidence, and exert more effort for task performance. Transactional leadership Involves an exchange relationship, in which followers exert effort for the purpose of getting contractual benefits in return from the leader and/or the group. Transformational and transactional leadership are not mutually exclusive © Prentice Hall 2006 8-11

Enhancers of Charismatic Leadership FOLLOWER CHARACTERISTICS TASK CHARACTERISTICS Followers’ work tasks have a moral element Followers’ tasks may cause major change in how people think and do things Distress, anxiety, isolation, or extreme uncertainty Years of schooling* Rank* Professionalism* ENHANCERS OF CHARISMATIC LEADERSHIP ORGANIZATIONAL & LEADER CHARACTERISTICS * These enhancers may vary depending on followers’ culture Crisis or major social change Leader’s high status, rank, experience & expertise Formal plans, goals, and procedures that support the leader’s mission Organizational history of charisma New entrepreneurial organization © Prentice Hall 2006 8-12

Neutralizers of Charismatic Leadership Although several writers have made interesting predictions, the research is very sparse on possible neutralizers of charismatic leadership. At this time, no research supports the suggestion that situational or follower characteristics can reliably neutralize the impacts of charismatic leadership. © Prentice Hall 2006 8-13

Substitutes for Charismatic Leadership FOLLOWER CHARACTERISTICS TASK CHARACTERISTICS Age Years of work experience Intrinsic task satisfaction Follower self-confidence and strong belief in human equality SUBSTITUTES FOR CHARISMATIC LEADERSHIP None found GROUP & LEADER CHARACTERISTICS Formal procedures such as group bonus plans, group goals, consensus decision making, and peer review processes High value placed on independence and self-management High leader expertise at follower’s task © Prentice Hall 2006 8-14

Process Model of Charismatic Leadership SITUATIONAL FACTORS INCREASING LEADER EFFECTIVENESS Enhancers Crisis or extreme uncertainty Follower distress, anxiety, isolation, helplessness, low self-esteem Organizational history of charisma Creative and/or inherently satisfying work task High leader rank, status, or expertise Educated and professional followers Formal plans, goals, and procedures that support leader’s mission New entrepreneurial organization Substitutes High leader rank and expertise Older experienced followers Formal plans, goals and procedures that replace the leader’s mission Consensus decision making or self-management CHARISMATIC LEADER BEHAVIORS Advocates moral mission and vision Uses inspirational rhetoric Builds own image in followers’ eyes Models behavior for followers with high expectations & confidence Takes risks to achieve mission Uses frame alignment to guide follower behavior SITUATIONAL FACTORS DECREASING LEADER EFFECTIVENESS Neutralizers None found so far FOLLOWER/GROUP PSYCHOLOGICAL REACTIONS Emotional involvement & attachment to the leader High esteem, trust, acceptance & loyalty to the leader High self-esteem, self-assurance & experienced meaningfulness of work Satisfaction with the leader, work & organization Organizational commitment Low stress level Possible hatred of the leader FOLLOWER BEHAVIORS AND OUTCOMES High follower performance * High group or departmental * performance Low job burnout Possible attacks on the leader Possible physical or financial destruction of followers * These psychological reactions and outcomes have shown the strongest improvement from leader’s charismatic behaviors. © Prentice Hall 2006 8-15

Assessing the Dynamics of Charismatic Leadership In diagnosing situations, charismatic leaders look for current and future culture shocks or crises that create anxiety and distress in followers. When these follower and environmental factors are present, a leader should use charismatic behaviors to influence followers. Charismatic leaders who are concerned with their followers’ development may also consider modifying environmental and follower characteristics to create factors that replace the need for charismatic leadership. Leaders can do this by (1) providing followers with valuable work experiences that are inherently interesting and satisfying and (2) helping followers succeed at their tasks to build their self confidence. © Prentice Hall 2006 8-16

Applying the Model of Charismatic Leadership 1. DIAGNOSING THE SITUATION Do followers face a crisis or extreme uncertainty causing them distress, anxiety, isolation, helplessness, or low self-esteem? Are followers’ tasks creative or inherently satisfying? Is there a history of charisma in the organization? Does the leader have a high-level position, status, or expertise? Are there formal plans, goals, and procedures that support the leader’s mission? Are there educated and professional followers who support the leader’s mission? If “yes” to one or more of these questions then followers will probably respond favorably to charismatic leadership. 3. MODIFYING FOLLOWERS & SITUATIONS Leaders also act to: Alleviate crisis, uncertainty, distress, anxiety, isolation, or low self-esteem. Make followers’ tasks more creative and satisfying Increase their own rank, status, and expertise Create plans, goals, and procedures that support or replace the leader’s mission Develop educated or professional followers 2. PROVIDING DIRECTIVE LEADERSHIP Leader demonstrates charismatic behaviors like the following: Advocating a moral mission & vision Using inspirational rhetoric Building own image in followers’ eyes Role modeling behavior for followers with high expectations & confidence Taking risks to achieve mission Frame alignment to guide follower behavior © Prentice Hall 2006 8-17